SCSLD 431/2/193/2010

This case involved a request by an employee who had been made redundant for compensation, unpaid salary and reinstatement. The case was rejected as the employee's department had been closed and they worked on an unfixed term contract so could be dismissed if there was good reason.

Background

An employee filed a case with the First Instance Authority for Settlement of Labour in Madinah against a bank requesting he be reinstated, be paid his salary for the period he was stopped from working, and receive compensation for moral and financial damages.

The First Instance Authority issued a ruling dismissing the case of the employee.

Decision

The employee filed an appeal before the High Authority for Settlement of Labour Disputes (SLHASLD) The SLHASLD stated the bank had been dismissed the employee on the grounds that the department which he worked had been closed and employers have the right to manage their businesses and achieve their business targets. Furthermore, the employee's contract was an unfixed term contract which could be ended by either party if there was a valid reason pursuant to Article 75 of the Labour Law.

Therefore, the SLHASLD agreed with the ruling issued by the First Instance Authority.